MNI BRIEF: BOJ Minutes: Board Warns Of Weaker Growth View

Bank of Japan board members are worried about expectations of lower growth and a pullback of financial intermediation amid a prolonged coronavirus disruption, according to minutes of the January 20-21 policy meeting released Wednesday.

"Members also agreed that, while the impact of Covid-19 remained, growth expectations would not decline substantially and the smooth functioning of financial intermediation would be ensured; however, these premises entailed high uncertainties," the minutes showed.

One member warned: "The number of bankruptcies of firms and discontinuation of businesses could increase, and in that case, there was a risk that a vicious cycle between financial and economic activity, which had been averted thus far, would emerge through an increase in credit costs."